General Mills Company (GIS) is striving hard to bolster its presence in the snacks market, and subsequently has decided to buy the fast-growing natural snack foods company, Food Should Taste Good.
The company, however, has not disclosed the terms of the deal. General Mills has revealed that Food Should Taste Good will be integrated into the Small Planet Foods business of General Mills.
In 1999 General Mills acquired the small Sedro-Woolley-based company, Small Planet Foods for an undisclosed sum to tap into the growing market for organic foods. Food Should Taste Good will join Cascadian Farm, Muir Glen and Larabar that was added to General Mills’ portfolio of natural and organic products division with Small Planet Foods.
Food Should Taste Good was founded in 2006 with the goal of making a unique “new snack with great taste, healthy ingredients and sophisticated flavor.”
The chips made by the company are created without trans fats, cholesterol, artificial ingredients and genetically modified organisms. They are also certified as gluten free, Kosher, low in sodium, and are also considered a good source of dietary fiber and many varieties are certified vegan. The small chips maker distributes its products nationally at natural food markets, fine grocers, as well as at specialty gourmets.
The signature tortilla chips of Food Should Taste Good come in a variety of flavors, including sweet potato, lime, olive, chocolate, multigrain and jalapeno. Founder Pete Lescoe will continue with the business as creative director.
General Mills, whose brands include Cheerios cereal, Nature Valley granola bars and Betty Crocker cake mixes, has been striving to offer healthy foods to Americans. In October 2011, it announced that it has been successful in improving the nutritional quality of 25% of the total products sold by it in the U.S.
Since 2005, General Mills has been striving to improve the nutrition profile of more than 600 different products in the U.S. In its endeavor of improving the “health profile”, the company targeted to chop down 10% of the unhealthy contents, including sodium, sugar, fat or calories. It also aimed at improving the nutritional quality by adding healthy components like vitamins, fiber or whole grain.
The acquisition of Food Should Taste Good, which strengthens its position in natural and organic products business segment, will take the retail giant closer to its goal.
General Mills currently holds a Zacks #3 Rank, which implies a short-term Hold rating. On a long-term basis, we have a Neutral recommendation on the stock.
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